[Federal Register Volume 64, Number 176 (Monday, September 13, 1999)]
[Notices]
[Pages 49483-49484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23660]


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DEPARTMENT OF ENERGY

Southwestern Power Administration


Proposed Rate Schedule Changes

AGENCY: Southwestern Power Administration, DOE.

ACTION: Notice of Opportunity for Public Review and Comment.

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SUMMARY: The Administrator, Southwestern Power Administration 
(Southwestern), has determined that revisions to the terms and 
conditions related to real power losses and both operating reserves 
ancillary services within existing rate schedules NFTS-98B and P-98B 
are required. Since the proposed changes to the rate schedules are 
associated with the terms and conditions of service and revised billing 
units for the ancillary services and do not impact the revenue 
requirements for the Integrated System, the net results of the 1997 
Integrated System Power Repayment Studies, which was the basis for the 
existing rate schedules, will not be altered. Southwestern held 
informal meetings with customers to discuss proposed changes and to 
provide opportunity for input in the development of these changes.

DATES: Written comments on the proposed rate schedule changes are due 
on or before October 13, 1999.

ADDRESSES: Five copies of written comments should be submitted to: 
Michael A. Deihl, Administrator, Southwestern Power Administration, One 
West Third Street, Suite 1400, Tulsa, OK 71103.

FOR FURTHER INFORMATION CONTACT: Mr. Forrest E. Reeves, Assistant 
Administrator, Office of Corporate Operations, (918) 595-6696, 
[email protected].

SUPPLEMENTARY INFORMATION: The names of the rate schedules will be 
changed to NFTS-98C and P-98C in order to reflect the fact that 
revisions have been made. Two areas of the rate schedules are being 
revised to reflect changes to the terms and conditions of both (1) Real 
Power Losses to allow for self-provision, and (2) the Spinning and 
Supplemental Operating Reserve Ancillary Services to be consistent with 
the application of Southwestern's provision for such services which 
will result in a change in rates for these services. These changes are 
addressed in detail below.

Real Power Losses

    The basis for determining the rate to charge for Real Power Losses 
(Losses) in the current rate schedules (P-98B and NFTS-98B) for 
transmission service is the average actual costs incurred by 
Southwestern for the purchase of energy to replace Losses during the 
most recent twelve-month period. Additionally, the current rate 
schedules require customers to purchase Losses from Southwestern to 
meet their obligation to replace loss energy. In the proposed rate 
schedules, the basis for determining the loss rate will remain the 
same; however, the period will be based on the previous fiscal year 
(October through September) rather than the most recent twelve-month 
period. The rate for Losses, to be effective the next calendar year, 
will be posted on Southwestern's Open Access Same-Time Information 
System by November 1 of each year. Southwestern also proposes, in 
addition to the existing rate schedule provision in which the customer 
purchases Losses, to allow the customer to annually elect to self-
provide all loss energy for which it is responsible. Such election for 
the self-provision of Losses shall be for a full calendar year and 
shall be exercised by the execution of a Service Agreement, or 
equivalent, on or before November 30th of the prior calendar year. 
Southwestern proposes to initially implement this new procedure 
effective January 1, 2000. Thereafter, the rate for losses will be 
reviewed and adjusted as needed to become effective at the beginning of 
each subsequent calendar year.

Spinning and Supplemental Reserve Ancillary Services

    The Federal Energy Regulatory Commission's Order No. 888 states 
that the transmission provider is required ``to offer to provide the 
ancillary services'' for Spinning Operating Reserves and Supplemental 
Operating Reserves ``to transmission customers serving load in the 
transmission provider's control area.'' The transmission customer may 
make alternative arrangements to acquire these services if the 
transmission customer demonstrates to the transmission provider that it 
has adequately done so. Consequently,

[[Page 49484]]

Southwestern designed its rates for these services on that basis and 
provided (in Rate Schedules P-98B and NFTS-98B) that the rates for 
these services were only to be applied to the transmission transactions 
that served load within Southwestern's control area.
    For reliability purposes, Southwestern operates its control area in 
accordance with the operating criteria of the Southwest Power Pool 
(SPP). The SPP criteria related to operating reserves require that each 
control area maintain an amount of operating reserves based on its net 
load responsibility. The effect of this is that Southwestern provides 
operating reserves on all generation in its control area for both 
internal and external delivery.
    After reviewing the existing operating conditions, Southwestern has 
determined that rate schedules P-98B and NFTS-98B need to be revised to 
reflect the criteria under which Southwestern operates its transmission 
system and provides the Operating Reserve Services. Southwestern 
proposes to revise the terms and conditions relating to the two 
Operating Reserve ancillary services to charge for these services for 
all transmission transactions utilizing generation sources located 
within Southwestern's control area because Southwestern is actually 
providing the Operating Reserve services for those transactions. In 
addition to these changes, the billing units for these services will be 
revised to reflect the additional users of these services, resulting in 
a decrease in the unit rate for these services from $0.03 per kW/month 
for Spinning Operating Reserve Services and $0.03 per kW/month for 
Supplemental Operating Reserve Services to approximately $0.0073 per 
kW/month for each of these two ancillary services. This will not change 
Southwestern's revenue requirements to recover the cost of providing 
these services.
    Redlined versions of the revised rate schedules NFTS-98C and P-98C 
will be made available upon request. To request a copy, please contact 
Barbara Otte at 918-595-6674 or at [email protected] or Tracey Hannon at 
918-595-6677 or at [email protected].
    The Administrator has determined that written comments will provide 
adequate opportunity for public participation in the rate schedule 
revision process. Therefore, an opportunity is presented for interested 
parties to submit written comments on the proposed rate schedule 
changes. Written comments are due no later than thirty (30) days 
following publication of this notice in the Federal Register. Five 
copies of written comments should be submitted to: Michael A. Deihl, 
Administrator, Southwestern Power Administration, One West Third 
Street, Suite 1400, Tulsa, OK 74103.
    Following review and consideration of written comments, the 
Administrator will finalize and submit the proposed rate schedules to 
the Secretary of Energy for approval on an interim basis. The Secretary 
will then forward the proposed rate schedules to the Federal Energy 
Regulatory Commission for confirmation and approval on a final basis.

    Issued at Tulsa, OK this 25th day of August 1999.
Michael A. Deihl,
Administrator.
[FR Doc. 99-23660 Filed 9-10-99; 8:45 am]
BILLING CODE 6450-01-P